Metals, Minerals & Mining
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Business News: Metals & Minerals
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U.S. STEEL / CARBONFREE — Announced a new agreement for CarbonFree to capture and mineralize up to 50,000 metric tons of CO2 annually from U.S. Steel’s facility in Gary, Indiana. The CO2 will be converted into calcium carbonate, used to create many products. Operations are projected to begin in 2026, with a 20-year term. (April 2024)
The North American Graphite Alliance (NAGA) wrote a letter to the Office of the U.S. Trade Representative asking to reinstate Section 301 tariffs on graphite products “to protect and stimulate the North American graphite industry.” It referenced a report by Oxford Economics NAGA commissioned illustrating China’s dominance of the supply chain and explaining the value of trade protections. (Feb 2024)
AUTOMOTIVE CELLS COMPANY (ACC) — Raised €4.4 billion ($4.7 billion) in debt financing for the construction of three gigafactories for lithium-ion battery cell production in France, Germany and Italy.
PANDORA — Announced it is now only sourcing recycled silver and gold for all its jewelry, two years earlier than it originally targeted. The company estimates this will avoid 58,000 tons of CO2 per year. (Feb 2024)
RIO TINTO — Announced it would buy all electricity for 25 years from a 1.1 GW solar farm in Australia to power its operations at Gladstone, through a new power purchase agreement with European Energy Australia. The farm, once approved, is targeted to start construction in 2025 or 2026. (Jan 2024)
H2 GREEN STEEL — Signed debt financing agreements for €4.2 billion ($4.6 billion), as well as adding €300 million in equity, and a €250 million grant from the EU Innovation Fund. This increases secured funding to €6.5 billion for constructing the world’s first large-scale green steel plant in Northern Sweden. (Jan 2024)
ICCM — The International Council on Mining and Metals (ICCM) announced its members (making up a third of the industry) pledged to a “5-point plan for nature” to reduce mining’s impact. These include: 1) No mining or exploration in protected areas; 2) Halting biodiversity loss at their operations; 3) Collaborating across value chains to reverse nature loss; 4) Restoring and enhancing landscapes around operations through local partnerships; and 5) Catalyzing wider change through addressing “fundamental systems that contribute to nature loss.” (Jan 2024)
NUCOR / HELION — Announced an agreement to develop a 500MW fusion power plant, with the power going to a Nucor steelmaking facility. The companies are working together to set a “firm timeline” and are targeting 2030 to begin operations. Nucor is investing $35 million in Helion to accelerate fusion deployment in the U.S.
BLUE WHALE MATERIALS — Announced that it will build a battery recycling facility in Oklahoma that will extract lithium, cobalt, nickel, and other metals from spent lithium-ion batteries. The facility will use its “Blacksand” technology to produce a concentrated dry product containing key materials that simplifies downstream refining steps, according to the company. (Sept 2023)
H2 GREEN STEEL — Raised €1.5 billion ($1.6 billion) in equity to finance the world’s first large-scale green steel plant and Europe’s first giga-scale electrolyzer. The plant, which will deliver steel with up to 95% less CO2 emissions compared to traditional blast furnace technology, aims to start operations end of 2025. (Sept 2023)
H2 GREEN STEEL — Signed a 7-year binding agreement to deliver low-emission steel to automotive supplier ZF starting in 2026, a deal valued at 1.5 billion euros. The agreement covers a “significant share” of ZF’s 2.5 million ton annual processing of steel. H2 Green Steel uses renewable electricity and hydrogen to produce low-emissions steel. Steel produced under the deal is expected to reduce CO2 emissions by nearly 2.3 million tons compared to traditional steelmaking processes. (July 2023)
ØRSTED / VESTAS — Established a partnership under which Ørsted will procure low-carbon steel wind turbine towers and blades made from recycled materials from Vestas in their joint offshore wind projects. The two companies pledged to procure and install a minimum of 25% low-carbon steel towers in joint projects and to scale circular blade recycling technology and, when commercially available, procure blades made from recycled materials. (June 2023)
MERCEDES-BENZ — Signed a new supply agreement with Swedish startup H2 Green Steel (H2GS) for 50,000 metric tons of low-carbon steel for use in vehicles in Europe, with the aim of establishing a sustainable steel supply chain in North America. The European steel will be made using green hydrogen and electricity from 100% renewable sources for manufacturing. H2GS aims to begin production in 2025, with plans to produce 5 million tons of low-carbon steel by 2030. H2GS aims to achieve a footprint of 0.4t CO2 per metric ton of steel at start of supply, compared to 2t CO2 per metric ton of steel from a classic blast furnace. (June 2023)
APPLE — Announced a commitment to use 100% recycled cobalt in all Apple-designed batteries by 2025. Also by 2025, magnets in Apple devices will use entirely recycled rare earth elements and all Apple-designed printed circuit boards will use 100% recycled tin soldering and 100% recycled gold plating. This comes after expansions in 2022 of the company’s use of recycled metals, including the sourcing of one quarter of all cobalt, two-thirds of all aluminum, 73% of all rare earths, and more than 95% of all tungsten from recycled material in Apple Products. (April 2023)
HOLCIM — Announced an upgraded target to reduce Scope 1 emissions per ton of cementitious material by 22% by 2030, in line with the Science-Based Targets initiative (SBTi) 1.5°C framework. Holcim said its efforts have reduced CO2 per net sales by 21% in 2022, and that it commits to additional reductions of more than 10% in 2023. The company also announced it would invest $2.2 billion in carbon capture technologies by 2030 and would capture more than 5 million metric tons of CO2 per year. (April 2023)
VOESTALPINE — Approved an investment of €1.5 billion ($1.62 billion) to build two electric arc furnaces at two steel plants in Austria. This will enable production of 2.5 million metric tons of CO2-reduced steel per year, cutting emissions by up to 30% (and Austria’s emissions by 5%), once commissioned in 2027. (March 2023)
RIO TINTO / BMW GROUP — Announced a partnership in which Rio Tinto will provide responsibly sourced aluminum for use in car body components at BMW’s South Carolina production plant from 2024. The aluminum will be low-carbon primary aluminum from hydro-powered operations in Canada, reducing CO2 emissions by up to 70% compared to BMW’s benchmark. (Feb 2023)
LKAB — Swedish mining company LKAB announced it had found Europe’s largest known deposit of rare earth metals. The deposits, located near the city of Kiruna in northern Sweden, are estimated to exceed one million metric tons. However, the company notes it could take 10 to 15 years before the metals are delivered to market due to further exploration, environmental assessment and permitting, and other steps to develop the mines. No rare earth metals are currently mined in Europe. (Jan 2023)
REDWOOD MATERIALS / PANASONIC — Battery materials and recycling startup Redwood will supply critical battery components to Panasonic Energy of North America. In this multi-billion dollar deal, Redwood will provide cathode material for battery cells for Panasonic’s factory being built in Kansas. (Nov 2022)
ARCELORMITTAL / MITSUBISHI HEAVY INDUSTRIES ENGINEERING (MHIENG) — Are collaborating on a multi-year trial of MHIENG’s carbon capture technology to be implemented at an ArcelorMittal’s steel plant in Gent, Belgium and a second plant in North America. The companies will also conduct a feasibility and design study to support progress to full scale deployment. BHP and Mitsubishi Development will fund the trial. (Oct 2022)
FORTESCUE METALS GROUP — Updated its decarbonization strategy, aiming to eliminate fossil fuel use and achieve real zero terrestrial emissions (Scope 1 and 2) across its iron ore operations by 2030. The Science Based Targets Initiative (SBTi) will verify and audit its emissions reduction. The company will invest $6.2 billion by 2030 in renewable energy generation, battery storage, and a greener mining fleet and locomotives. It expects to avoid 3 million metric tons of CO2 per year and save $818 million in operating costs per year from fossil fuel costs and carbon fees. (Sept 2022)
JSW — India’s JSW Steel will collaborate with Germany’s SMS group to invest $1.26 billion to reduce carbon emissions at its plants. JSW aims to reduce emissions by 42% by shifting to more renewable energy, using more steel scrap, and increasing the processing of raw minerals. (Sept 2022)
RMI’s Climate Intelligence Program has released guidance for steel companies to report and reduce the greenhouse gas impact of their products. Specific strategies to reduce impacts include: increasing recycled content of their products; deploying low-emissions ore processing technologies; and using zero-emissions electricity. The guidance was developed through a collaboration between RMI and the World Business Council for Sustainable Development (WBCSD). (Sept 2022)
SUNTORY — Will use the world’s first 100% recycled aluminum can for two limited edition beers. The cans, developed by UACJ Corporation and Toyo Seikan Group Holdings, Ltd., emit 60% less CO2 than regular aluminum cans. (Sept 2022)
JFE STEEL — The Japanese steel company will spend $7.2 billion on low-carbon technology over the next eight years to achieve its 2030 goal to reduce CO2 emissions by 30% compared to 2013 levels. This includes investing in electric arc furnaces that can recycle scrap as well as capturing and storing CO2. (Sept 2022)
STEEL DYNAMICS / AYMIUM — Announced a joint venture, which will operate as SDI Biocarbon Solutions, LLC, to build and operate a biocarbon production facility to supply Steel Dynamics’ electric arc furnace steel mills with renewable carbon. The Aymium-patented process produces biocarbon using sustainably sourced biomass instead of fossil fuels such as coal and coke. Steel Dynamics estimates that the change, slated to begin with the facility’s opening in late 2023, will reduce Scope 1 emissions from its steel-making operations by 20–25 percent. (July 2022)
VALE — Brazil-based mining company Vale is launching a $100 million venture capital fund, Vale Ventures, that will support pioneering startups focused on sustainability in the metals & mining sector. Vale Ventures will purchase minority stakes—often as an initial funder—in new companies focused on: a) decarbonization of the mining industry; b) zero-waste mining, with a focus on circularity and new revenue streams; c) boosting supply and demand of metals essential for the transition from fossil-fuels to clean energy; and d) disruptive technologies. (June 2022)
EXURBAN — UK-based recycling firm Exurban will invest more than $340 million to develop the world’s first zero-waste smelter and refinery to retrieve valuable metals from discarded electronics. The facility, to be built in Fort Wayne, Indiana by 2025, will reduce the need for new mining and keep harmful e-waste pollution out of the environment. (May 2022)
APPLE — Investments from Apple’s $4.7 billion Green Bond program, intended to spur new low-carbon manufacturing and recycling technologies, have contributed to the development of the world’s first commercial-grade, low-carbon aluminum available at industrial scale. Apple is purchasing the aluminum from ELYSIS—an investment partnership with Alcoa, Rio Tinto and the governments of Canada and Quebec—with intended use in its iPhone SE. (March 2022)
U.S. STEEL — Broke ground on a $3 billion sustainable steel mill in Arkansas. It will feature two electric arc furnaces (EAFs) capable of producing 3 million tons of steel per year and will be the first mill in the country to use endless casting and rolling technology with “significant” energy and efficiency benefits. (Feb 2022)
ARCELORMITTAL — Committed to investing $1.9 billion by 2030 to build new, sustainable facilities at two steelmaking sites, which will gradually replace three out of five ArcelorMittal blast furnaces in France and reduce the company’s French carbon emissions by nearly 40% by 2030. It also committed to capturing residual carbon for storage or usage, and producing steel with up to 25% recycled steel per kilo. The facilities will be operational starting in 2027. (Feb 2022)
SSAB — Committed to investing about $4.8 billion through 2030 to transform its Luleå and Raahe plants in Sweden and Finland into “cost-effective mini-mills” that create fossil-free steel with electric arc furnaces. The goal is to eliminate most of SSAB’s Nordic emissions by 2030 (accelerated from its former goal of 2045), which could cut Sweden’s total CO2 emissions by 10% and Finland’s by 7% (2022 baseline). (Jan 2022)
TALON METALS / TESLA — Tesla signed an agreement with Talon Metals to responsibly source nickel for EV batteries, wherein Tesla would buy 75,000 metric tons of nickel concentrate produced at Talon Metals’ proposed “Tamarack Nickel Project” in Minnesota over six years. The project, a Talon Metals-Rio Tinto joint venture, is expected to offer permanent carbon storage and have fully traceable mining operations. Under the Tesla agreement, Talon must make "commercially reasonable efforts" to open the mine by January 1, 2026. (Jan 2022)
METINVEST — Ukraine's largest steelmaker committed to investing $20 billion-30 billion to replace four coal-fired blast furnaces with new equipment that will produce fewer carbon emissions, starting in 2028. It also committed to cutting GHG emissions by 15% by 2030 and by 40% in another 10 years. (Jan 2022)
BHP GROUP — The world’s largest mining company is investing $40 million to accelerate the development of a nickel project run by Kabanga Nickel in Kabanga, Tanzania—“the largest development-ready nickel sulphide deposit in the world.” BHP also invested $10 million in Lifezone Limited (whose hydromet technology will be used to green the project’s refining process) and plans to invest another $50 million in the project if certain conditions are met. (Jan 2022)
List of Business News: Metals and Minerals, 2021-2020 (PDF)
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Global Resources Outlook 2024 (United Nations Environment Programme’s International Resource Panel) — Reveals that rising trends in global resource use have continued or accelerated since the last Outlook in 2019 and shows how demand for resources is expected to continue increasing in the coming decades (currently averaging 2.3% per year). Extraction and processing of material resources now account for 55% of greenhouse gas emissions (60% if including land use change effects). Without urgent and concerted action, by 2060 resource extraction could rise by 60% from 2020 levels, driving increasing damage and risk. The report explores scenarios where resource use is reduced and the policies that could phase out unsustainable activities. (March 2024)
2023 State of the Industry Report: Next-Gen Materials (Material Innovation Initiative) — Summarizes the development of the next-gen materials industry (animal-free and more sustainable than current-gen materials like synthetic leather or incumbent materials like wool, down, and skins). Key trends (March 2024):
- Investment funding in the industry increased 8.6% in 2023 to $496 million, despite overall venture capital funding falling 42%.
- Over $3 billion has been invested since 2014 over 285 deals.
- The largest category is plant-based (53%) and the second is microbe-derived (14%).
- There are currently 137 next-gen materials companies, up from 60 in 2014, with 88 working on the biomimicry of animal leather and exotic skins.
At least 16% of the world’s land-based critical mineral mines, deposits, and districts are located in areas already facing high or extremely high levels of water stress, according to new research by World Resources Institute. Critical mineral mining can be extremely water intensive and polluting, further straining limited freshwater supplies. A further 8% of global critical mineral locations are in arid and low-water use areas. (Feb 2024)
X-Change: Batteries: The Battery Domino Effect (RMI) — Highlights the exponential growth of battery sales, driven by broad battery technology adoption across countries and sectors. As adoption grows, this is fueling reduced costs and a positive feedback loop that is reinforcing adoption and expanding it to new and additional sectors. The report specifically explores some of the exponential changes witnessed, including increases in energy density, innovation, and demand, and decreases in costs; and projects growth under two different scenarios until 2030. It also explores the drivers of change that will accelerate battery adoption, including policy, corporate investments, improving technology, and additional cost reductions. Barriers to change discussed include charging infrastructure and mineral demand. (Jan 2024)
Inflation Reduction Act: Impact on North America metals and minerals market (S&P Global) — Demand from decarbonization technologies in the U.S. will continue to accelerate and be materially higher for lithium (+15%), cobalt (+14%) and nickel (+13%) by 2035 than was projected before the Inflation Reduction Act (IRA) was enacted in August 2022, according to this study. Adding on already expected demand growth means demand for lithium, cobalt, and nickel will be 23 times higher in 2035 than in 2021. Demand for copper (+12% post-IRA) will be twice as high. The study also finds that challenges remain in securing the supply of critical minerals needed. Of the four metals studied, only lithium is likely to be sufficiently supplied to the U.S. under the IRA. Nickel is the most challenged in terms of supply. (Aug 2023)
Material and Resource Requirements for the Energy Transition (Energy Transitions Commission (ETC)) — Between 2022–2050, the energy transition could require the production of 6.5 billion metric tons of end-use materials, 95% of which would be steel, copper and aluminum (with a smaller percentage being critical minerals). This is comparable to the 8 billion tons of coal currently extracted annually. Key issues in this transition are not shortages of materials but ramping up supply fast enough to decarbonize the global economy and ensuring mining is done in ways that minimize local and global environmental impacts. To expand supply quickly four actions are recommended (July 2023):
- Building new mines and expanding existing supplies of materials quickly.
- Building a more diverse and secure supply.
- Improving the sustainability and responsibility of production.
- And reducing pressure on primary supply through increasing materials efficiency and recycling.
Critical Minerals Market Review 2023 (International Energy Agency (IEA)) — Record deployment of clean energy technologies is propelling huge demand for minerals such as lithium, cobalt, nickel, and copper, according to this inaugural market review by the IEA, and its accompanying online data explorer. From 2017 to 2022, the energy sector was the main factor behind a tripling in overall demand for lithium, a 70% jump in demand for cobalt, and a 40% rise in demand for nickel. The market for energy transition minerals reached $320 billion in 2022 and is set for continued rapid growth. Investment in critical mineral development rose 30% last year, following a 20% increase in 2021. The report finds that if all planned critical mineral projects worldwide are realized, the supply could be sufficient to support the national climate pledges announced by governments. However, the risk of project delays and technology-specific shortfalls could impede this. Even without disruptions, more projects would be needed by 2030 in a scenario that limits global warming to 1.5 °C. (July 2023)
The net-zero materials transition: Implications for global supply chains (McKinsey) — Finds that the accelerating deployment of climate technologies for the net-zero transition could lead to shortages of key materials by 2030. Supply pressures emerge in part because net-zero technologies can be materials-intensive; for example, battery electric vehicles (BEVs) can be 20% heavier than comparable internal-combustion engines. Without mitigation measures, supplies of lithium, cobalt, nickel, graphite, dysprosium, neodymium, copper, iridium and tin could fall short of demand, in some cases by substantial margins. Such shortages could hinder the global speed of decarbonization and could lead to price spikes and volatility across materials. Minerals and metals will continue to be concentrated in a few countries, like China (rare-earth elements), the Democratic Republic of the Congo (cobalt), and Indonesia (nickel). Avoiding shortages will require harmonized actions in these domains (July 2023):
- Supply. Timely implementation of announced mining projects and an acceleration of mining and exploration could help ensure supply beyond 2030. Investments in mining, refining, and smelting will need to increase to approximately $3 trillion - $4 trillion by 2030. Some 300,000 to 600,000 specialized mining professionals and an additional 200 to 500 gigawatts of energy will be needed by 2030.
- Demand. Downstream industries will need to shift demand toward technologies that are less materials-intensive or that require different materials for which supply is less constrained.
- Innovation. Investments could be made in material substitution options for materials constrained over the long term or that are regionally concentrated, and in enhanced recycling practices for new materials such as rare-earth minerals.
- Policy. Streamlined permitting procedures for new asset development, policies that guarantee a level playing field across different technological options, and safeguards for regional security of supply and industry competitiveness could be helpful.
Sunsetting Coal in Steel Production (SteelWatch) — A business-as-usual approach to continued coal-based steel production will use up almost a quarter of the world’s total remaining carbon budget by 2050, according to this inaugural report by the new “climate watchdog” organization, SteelWatch. In order to align with a 1.5°C pathway by 2030, the industry will need to reduce CO2 emissions by 1.8 gigatons. 90% of carbon emissions from steelmaking comes from coal-based production. Of the 400 steel facilities that rely primarily on coal-blast furnaces globally, 71% have at least one furnace due for refurbishment or “relining” (an investment that extends its useful life 15-20 years) in the next seven years. The report concludes that no investments in new or relined coal-blast furnaces should be made in OECD countries or by OECD-based companies, and no investment (in new or existing) coal-based blast furnaces should be made in emerging economies from January 2028. (July 2023)
Unlocking the First Wave of Breakthrough Steel Investments (Energy Transitions Commission (ETC)) — Maps out an investment case for near-zero emissions primary steel projects (“breakthrough” steel using green hydrogen to produce direct reduced iron) in the U.S., the UK, Spain and France, that could align the steel sector with a 1.5°C pathway to net zero. This would require the equivalent of 190 million metric tons per year of green steel production by 2030. To achieve that, the pipeline of near-zero emissions primary steel projects must triple within the next three years. As lead times are long, this will require strong coordination between industry, policy and the wider value chain. The report finds that the price of low-carbon electricity (for green hydrogen production and for direct process power) is the critical market factor in determining competitiveness. It also finds that policy developments in the U.S. and the EU put a viable investment case within reach in the four countries. Additional government support for capital expenditures and forward purchase agreements at an initial premium offer practical ways to close the financial gap for green steel projects in the near-term. The report is underpinned by an open-access financial model that simulates the financial performance of different steel project configurations, which can be accessed here. (April 2023)
Lithium-ion battery pack prices increased to $151/kWh in 2022, up 7% from 2021. This is the first time prices have increased since 2010, according to BloombergNEF’s annual battery price survey. Raw material and component price increases have been the biggest contributors to price increases. Prices could have increased even more, however, new lower cost chemistry helped reduce costs. BNEF expects battery prices to start dropping in 2024 when more lithium extraction and refining capacity comes online. (Dec 2022)
More than half of the energy transition minerals and metals (ETMs) resource base is located on or near “the lands of Indigenous and peasant peoples,” according to a new study in Nature Sustainability. The research examined 30 ETMs and 5,097 current and future mining projects. 54% of those projects (and 85% of lithium projects) were on or near Indigenous peoples’ lands. And 29% of projects were on land that Indigenous people manage or influence for conservation purposes. (Dec 2022)
Decarbonizing the steel and iron ore industry by 2050, in line with the Paris Climate Agreement, will require US$1.4 trillion of investment and “revolution across every stage of the value chain,” according to a new Wood Mackenzie research report. The report finds that $800-900 billion will be needed to abate carbon from existing steelmaking infrastructure and $250-300 billion to upgrade mining operations. It also warns that measures implemented will still fall short of emissions targets, requiring an additional investment of $200-250 billion in carbon offset measures. (Sept 2022)
Solar PV Global Supply Chains (International Energy Agency (IEA)) — Makes the case for diversification of solar photovoltaic (solar PV) supply chains to lessen market vulnerability as demand increases. China’s share of key component global production of key solar PV components is approaching 95%, and the country controls most of the key mineral production as well. While China is the most cost-competitive producer in the world, it also has a history of human rights abuses related to labor and is highly subject to tariffs to discourage dumping and other trade violations. To counter the market vulnerability posed by such concentrated reliance on China, the report’s authors present a roadmap focused on five key policy action areas (July 2022):
- Diversify manufacturing and raw material supplies.
- De-risk PV manufacturing investment.
- Ensure environmental and social sustainability.
- Continue to foster innovation.
- Develop and strengthen recycling capabilities.
A new S&P Global report entitled The Future of Copper, finds that copper supply may be a critical limiting factor in scaling technologies needed to meet global climate goals. Copper is essential for electrification, and demand for the metal is projected to double by 2035. At that point, the limits of supply through current mining and recycling processes are projected to fall about 20% short of the 50 million metric tons that will be needed. The report recommends increasing the output and lifespan of existing mining and recycling sites, while easing regulatory and fiscal barriers to developing new sites as quickly as possible. It should be noted that mining companies supported the research, but S&P claims the report is independent of their influence. (July 2022)
Bank of America’s commodities research team has identified risks associated with shortages of certain metals—including lithium, cobalt, manganese, iridium, molybdenum, copper, nickel, and aluminum—essential for power generation and storage technologies that contribute to global emissions reductions. The team suggested that the mining industry may need to increase capital expenditures to $160 billion a year, up from around $99.5 billion per year in the past decade, if the world is to reach emissions reductions aligned with net zero by 2050. (June 2022)
A new report by Wood Mackenzie predicts that by 2050 steel's carbon emissions will fall 30% compared to 2021 levels due to an anticipated rise in the use of less-polluting electric arc furnaces (EAFs) in steelmaking. The report estimates that 48% of global crude steel will be made via EAF by 2050, up from 30% in 2021 and almost on par with traditional blast furnace steelmaking. Green hydrogen-based direct reduced iron, scrap use, and carbon capture, utilization, and storage (CCUS) will also contribute to the industry’s falling emissions. (May 2022)
Investor support continues to increase for experimental direct lithium extraction (DLE) technology, an emerging alternative to open pit mining and evaporative collection. Lithium for batteries is expected to be essential to the global transition to electric vehicles; DLE methods, if proven viable and taken to scale, would tap vast amounts of lithium present in salt lakes, seawater, and geothermal water (collectively, “brines”)—quantities far greater than those in hard rock deposits. More than 70% of U.S. lithium deposits are held in brine reserves. (April 2022)
Decarbonizing Steel: A Net-Zero Pathway (BloombergNEF) — Outlines a pathway for the global steel industry to produce profitable, low-carbon steel by 2050. It concludes that steel could be produced with almost no emissions through $215 billion-$278 billion of additional capital investment and solutions such as increased recycling, hydrogen fuel, clean energy, and carbon capture. (December 2021)
Aluminum Tracking Report (International Energy Agency) — Tracks the direct carbon intensity of global aluminum production against what is needed to be on track with IEA’s Net Zero by 2050 scenario. It reports that the intensity has stayed relatively flat in recent years but must fall by 3% annually through 2030 to align with the scenario. (December 2021)
Steeling Demand: Mobilising Buyers to Bring Net-Zero Steel to Market Before 2030 (Energy Transitions Commission, Material Economics) — Developed on behalf of the Mission Possible Partnership Net-Zero Steel Initiative and with Breakthrough Energy's support, the report identifies likely early markets for low-CO2 steel; calls upon sector industry leaders to buy low-CO2 steel; and makes recommendations for steel buyers and users, steel producers, policymakers and public organizations, and civil society. (July 2021)
Sector-Level Strategies and Targets to Limit Warming to 1.5°C (RMI) — Provides sector-level targets and strategies for electricity, buildings, transportation and mobility, and industry to achieve alignment with a 1.5 °C global warming scenario. The report is a companion brief to “Scaling US Climate Ambitions.” (May 2021)
Transition Finance: Finding A Path To Carbon Neutrality Via The Capital Markets (S&P Global) (March 2021)
- Argues that “transition finance, including issuance, could contribute up to $1 trillion per year to the economy as companies in hard-to-abate sectors, which were previously absent from the sustainable debt market, raise capital and use the proceeds for activities that help them reduce their carbon footprint.”
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How to Lose Half a Trillion (Planet Tracker) — Investing in deep sea mining could cause over $500 billion in value destruction, including $30-132 billion of corporate value (primarily in the mining sector itself). The impact on deep sea ecosystem services could lead to natural capital destruction of at least $465 billion, primarily through habitat destruction. The study further finds that the deep-sea mining industry would not beat the cost of the capital it requires to exist. The report recommends financial institutions could claim a major success in nature conservation while avoiding significant destruction of corporate value and natural capital by preventing deep sea mining (e.g. through their support of a moratorium on deep sea mining). (March 2024)
The Sky High Cost of Deep Sea Mining (Planet Tracker) — Assesses the potential impact of deep sea mining, which in international waters alone could total more than 1.5 million square kilometers (km2) set aside for deep sea mining exploration (22 times the total terrestrial mining land area). Areas of interest—regions of “polymetallic nodules”—are essential habitats for marine life, with over half the species living in the Pacific abyssal plains dependent on these nodules. With costs of deep sea restoration so high (estimated at $5.3-5.7 billion per square kilometer, which is higher than estimated revenues of $4.4 billion/km2 for deep sea mining in 2030), it would be impossible for deep sea mining companies to pay for restoration and operate at a profit. Restoration would also require long-term monitoring and would be difficult to maintain accountability due to high costs of remotely operated vehicles. Considering these factors, the report calls for financial institutions to support a moratorium on deep sea mining, which could expose them to significant policy, regulatory, and reputational risks. (July 2023)
Investor support continues to increase for experimental direct lithium extraction (DLE) technology, an emerging alternative to open pit mining and evaporative collection. Lithium for batteries is expected to be essential to the global transition to electric vehicles; DLE methods, if proven viable and taken to scale, would tap vast amounts of lithium present in salt lakes, seawater, and geothermal water (collectively, “brines”)—quantities far greater than those in hard rock deposits. More than 70% of U.S. lithium deposits are held in brine reserves. (April 2022)
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The Drive to Decarbonise Industry: A How-to Guide for Companies (Sustainable Markets Initiative, Energy Transition Taskforce) — Outlines a roadmap for decarbonizing steel, aluminum, and mining, which collectively contribute 12% of global CO2 emissions. The guide finds that decarbonization requires enhanced collaboration and action between multiple stakeholders: governments, financial institutions, investors, the target industries and enterprises that support their operations, technology developers, and customers. (Dec 2023)
The Global Steel Climate Council (GSCC) published a draft of “The Steel Climate Standard,” a single, technology-agnostic protocol for all steel producers to follow when measuring and reporting carbon emissions. The standard aligns with the Paris Climate Agreement goal of achieving a 1.5ºC scenario. It includes product certification criteria to inform customers if purchased steel is on the Paris Climate Agreement glide path. GSCC is accepting public comments until May 17, 2023. (May 2023)
Unlocking the First Wave of Breakthrough Steel Investments in the United States (RMI) — Summarizes non-financial industry solutions to accelerate and realize a financial investment decision for domestic breakthrough near-zero emissions steelmaking projects over the next five-years. The report details key conditions needed to secure the investment case for low-emissions steel production in the United States, including: developing partnerships across the steel value chain; ensuring projects immediately and effectively use public funding opportunities; tapping into public and private funding opportunities available to sustainable investments; and securing off-take agreements for low-emissions steel. (March 2023)
Aluminum Climate-Aligned Finance Working Group, a new collaboration by the three top lenders to the aluminum sector—Citi, ING, and Societe Generale—in partnership with RMI’s Center for Climate-Aligned Finance, will create a shared climate-aligned finance (CAF) framework that defines how lenders can support the decarbonization of the aluminum sector and measure progress toward that goal. By signing up to the CAF framework, participating financial institutions will commit to assessing and disclosing the degree to which the emissions associated with their aluminum portfolios are in line with 1.5°C climate targets — and to do so in accordance with the guidelines set forth by the UN-convened Net-Zero Banking Alliance. (June 2022)
ARCELOR MITTAL — Launched a green steel carbon offset program, “XCarb™ green steel certificates,” which allows customers to purchase certificates along with physical steel orders to offset scope 3 emissions. It also announced an offering of recycled steel produced with renewable energy and launched an innovation fund to invest up to $100 million annually in companies developing green steel technology. (March 2021)
Responsible Mining Solutions
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GRI announced a public comment period is underway for the new GRI Mining Standard. The draft Standard identifies 25 environmental, social, and economic issues that cover the full range of mining and quarrying companies’ impacts, including climate change, water and waste, land and resource right, forced labor, anti-corruption, and government payments. It also addresses three topics new to GRI standards: tailings facilities and hazardous waste streams; small-scale mining; and operating in conflict zones. The exposure draft, which aligns with existing ESG and disclosure framework for the sector, is open for consultation until April 30. There will be two informational webinars on February 23 at 17:00 CET and March 2 at 9:00 CET. (Feb 2023)
The Copper Mark is launching a pilot implementation of the Molybdenum, Nickel, and Zinc Marks based on The Copper Mark assurance framework to promote responsible production practices of copper. The pilot will also seek to better understand the application of these standards for multi-metal producers and the extent to which this approach supports participants’ ability to meet upcoming regulatory requirements and market expectations. The pilot will run until July 2023 and a full launch is planned for 2023. (Oct 2022)
Circular System for Assessing Rare Earth Sustainability (CSyARES) (Rare Earth Industry Association, BEC GmbH, Circularise, Grundfos, Minviro) — A new, blockchain-based system to certify sustainable rare earth outputs and improve supply chain transparency. The project is funded by the EU through EIT Raw Materials and is set to launch in three years. (Feb 2022)
The Responsible Minerals Initiative (RMI) released a new Global Responsible Sourcing Due Diligence Standard for Mineral Supply Chains. The new standard applies to all upstream actors in mineral supply chains and seeks to help companies meet regulatory requirements and align with OECD guidance. (Dec 2021)
Collaboration
Collaboration to Decarbonize Metals & Minerals
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Race to Green Steel —
This campaign, launched by four climate and industrial organizations, will work to educate automakers,
helping them navigate existing programs focused on setting green steel targets, and supporting them in procuring low-emissions or near-zero emissions steel. (Feb 2024)
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RMI Investor Network — The Responsible Minerals Initiative (RMI) launched this network to advance responsible mineral sourcing and engage institutional investors in the renewable energy transition. The Network offers investors access to due diligence tools (such as its global risk map, material insights platform, and risk readiness assessment) and collaborative opportunities with the RMI and its more than 500 company members. (Feb 2024)
The Global Investor Commission on Mining 2030 (Mining 2030 Commission) — Has received the support of 82 investors with over $11 trillion in assets under management and announced the 24 Commissioners of the commission (representing a broad spectrum of stakeholders from industry, civil society, unions, investors, and others). The commissioners will meet monthly to help develop a “vision for the future of mining” to meet future mineral demand in a socially and environmentally responsible manner. (Dec 2023)v
Sustainable Steel Buyers Platform — Leading corporate consumers of steel, including CEF member Microsoft, announced a plan to jointly request a total of two million metric tons of “near-zero emissions” steel from producers (using green electricity, renewable hydrogen, or capturing emissions). The Platform will begin a competitive procurement process open to all steelmakers to deliver sustainable steel to North America. (Sept 2023)
Alliance for Low-Carbon Cement and Concrete — Launched by companies from the cement and concrete sector, this new alliance aims to drive decarbonization of the sector, achieving near-zero emissions as early as 2040 while also fostering industrial innovation. It aims to change policy, regulatory, and financial frameworks to help low-carbon alternatives to enter the cement and concrete markets and scale up. It is also promoting shifting from the existing “recipe-based” standards on cement and concrete to a “performance-based” approach, allowing the uptake of low-carbon cement and concrete solutions on the market. (June 2023)
Copper: The Pathway to Net Zero — In a new roadmap, the International Copper Association has set out plans to reduce members’ Scope 1 and 2 emissions by 30-40% by 2030, by 70-80% by 2040, and reach net-zero by 2050, even as demand for copper doubles by 2050. Members would also aim to reduce scope 3 emissions by 10% by 2030, 30-40% by 2040, and 60-70% by 2050, resulting in a collective emissions reduction of up to 85% by 2050. The roadmap details four levers based on market-ready and developing technologies: alternative fuels, equipment electrification, green electricity, and energy efficiency. Carbon capture and offsets would be limited to minimal, highly specific cases. (March 2023)
The Global Investor Commission on Mining 2030 — This investor commission, advised by the UN Environment Programme, will address key systemic risks that challenge the mining sector’s ability to meet increasing mineral demand for the low carbon transition. The commission will focus on several key areas including: artisanal mining, child labor, automation, Indigenous rights, biodiversity impacts, climate change, tailings dams, conflict reconciliation, and corruption. It will identify global best practice standards and disclosures, including where ESG data can be consolidated, and where investors, banks, insurers and mineral demand side companies can align to develop more responsible mining practices and standards. (Jan 2023)
Decarbonization of Steel Collaboration — ResponsibleSteel and the Sustainable STEEL Principles Association (SSPA) signed an MOU to increase collaboration to facilitate the decarbonization of the steel industry. This partnership provides two complementary pathways to facilitate this, with ResponsibleSteel providing an international standard for steel sites and the Sustainable STEEL Principles providing a framework for banks to assess decarbonization of the steel companies within their portfolios. (Jan 2023)
An international group of leading steel manufacturers formed the Global Steel Climate Council, a coalition to urge the United States and European Union to adopt a global emission standard that incentivizes steelmakers to use the cleanest steel production process available, regardless of the technology. This would prevent higher-emission steel from being labeled as green as lower-emission steel (e.g. steel that uses scrap steel as an input instead of ore). (Nov 2022)
Collaboration to Scale CCUS in the Cement and Concrete Industry— The Clean Energy Ministerial CCUS and the Global Cement and Concrete Association announced an agreement that will help scale up the deployment of carbon capture, utilization and storage (CCUS) throughout the cement and concrete industry to increase innovation and investment, and accelerate decarbonization efforts. Central to the agreement will be exploring incentives, policy frameworks, and finance solutions at a global level that can enable industrial-scale CCUS projects over the next ten years. The two organizations will work together to ensure the long-term deployment of CCUS, beyond 2030, via both policy and technological development. (Oct 2022)
Six top lenders to the global steel sector — Citi, Crédit Agricole CIB, ING, Societe Generale, Standard Chartered and UniCredit — signed the Sustainable STEEL Principles (SSP), a Climate-Aligned Finance agreement for lenders to the steel industry, convened by RMI. The principles provide a methodology for banks to measure and report the emissions associated with their loan portfolios compared to net-zero emissions pathways. (Sept 2022)
ConcreteZero — A global initiative, led by Climate Group in partnership with World Green Business Council (WorldGBC) and World Business Council for Sustainable Development (WBCSD), that brings organizations together to create a global market for net zero concrete. Businesses that join ConcreteZero commit to using 100% net zero concrete by 2050, with interim targets of 30% low-emission concrete use by 2025 and 50% by 2030. This sends a strong market signal for sustainably produced and sourced concrete. Reporting by members of concrete-related emissions associated with their infrastructure (July 2022)
SteelZero (Climate Group / Responsible Steel) — Expanded its ranks with new members Iberdrola, Siemens Gamesa, Vattenfall BA Wind—all big players in wind power infrastructure—and Volvo Cars. They become part of a consortium that has committed to sourcing 50% low-carbon steel by 2030 and 100% net-zero steel by 2050, sending a strong market signal to steel producers that decarbonization of the industry will be an essential transition. The steel industry currently accounts for about 7% of global GHG emissions, but the technology for significant reductions already exists. (June 2022)
First Movers Coalition — The flagship public-private partnership announced a major expansion to more than 50 corporate members—including CEF members Alphabet, Microsoft, Ecolab, Ford, and Schneider Electric—worth about $8.5 trillion and a total of nine governments comprising over 40% of the global economy. The coalition, which aims to create market demand for early-stage technology that cuts emissions from hard-to-abate industry sectors, also launched new sector initiatives in aluminum and carbon dioxide removal (CDR). In the Aluminum sector, Ball Corporation, Ford, Novelis, Trafigura, and Volvo Group committed to have near-zero emissions from 10% of their primary aluminum purchases by 2030. New CDR sector 2030 commitments include (May 2022):
- Alphabet, Microsoft, and Salesforce collectively committed $500 million to CDR.
- Boston Consulting Group (BCG) pledged to remove 100,000 metric tons of carbon.
- AES, Mitsui O.S.K. Lines, and Swiss Re each committed to 50,000 metric tons of carbon removal, equivalent to a $25 million investment from each company.
- Members must demonstrate that the carbon can be stored for more than 1,000 years.
- Breakthrough Catalyst, Carbon Direct, Frontier, and South Pole joined the coalition as implementation partners for the CDR initiative.
The US State Department, through Special Presidential Envoy for Climate John Kerry, and the World Economic Forum launched the First Movers Coalition, a public-private partnership to accelerate green technologies’ commercial viability and decarbonize 8 hard-to-abate sectors by 2030. The 32 founding corporate signatories, accounting for over $8 trillion in market capitalization, will sign purchasing commitments tailored to create market demand for the technologies. CEF members Amazon, Apple, Bank of America, Boeing, and Trane Technologies are signatories. Breakthrough Energy is the Primary Implementation Partner. (Nov 2021)
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The U.K. and over 40 countries collectively representing 70% of global GDP launched the Breakthrough Agenda, a framework for public-private action to deliver clean, affordable technologies worldwide by 2030 and help keep 1.5°C warming within reach. British Prime Minister Boris Johnson unveiled the first set of government-led Breakthroughs—the Glasgow Breakthroughs—for action across the steel, power, road transport, hydrogen, and agriculture sectors, which could generate over $16 trillion across global economies. (Nov 2021)
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23 countries—including the U.S., the EU, and Saudi Arabia—are collaborating through Mission Innovation on four new “missions” to catalyze investment in clean technologies that decarbonize hard-to-abate sectors (Nov 2021):
- An Urban Transitions Mission to deliver at least 50 large-scale, integrated demonstration projects in urban environments around the world by 2030
- A Net-Zero Industries Mission to reduce emissions at the end of their next refurbishment cycle
- A Carbon Dioxide Removal (CDR) Mission to enable a net global reduction of 100 million metric tons of CO2 annually by 2030
- An Integrated Biorefineries Mission to produce renewable fuels, chemicals, and materials
MISSION POSSIBLE PARTNERSHIP (MPP) — The coalition of over 300 public and private corporate partners will release plans to enable the hard-to-abate steel, aviation, and shipping sectors to reach net-zero emissions by 2050, significantly reduce emissions by 2030, estimate decarbonization costs, and guide policymakers’ regulations and investment. The aviation plan is being created in partnership with WEF’s Clean Skies for Tomorrow Coalition. (Oct 2021)
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Ceres launched a new “Ambition 2030” initiative to decarbonize the North American steel, electric power, oil and gas, banking, food, and transportation sectors. Ceres will call on companies to: commit to climate actions aligned with the Ceres Roadmap 2030, create robust climate-transition plans, disclose their progress on interim targets, and utilize the Climate Action 100+ sectoral strategies being released this fall. (Sept 2021)
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U.S. STEEL CORP. — Announced it will partner with oil and gas producer Equinor U.S. Holdings Inc. to explore the potential for carbon capture and storage, and hydrogen development in Appalachia. (July 2021)
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Steel Climate-Aligned Finance Working Group — A new RMI-led working group involving 6 banks—Citi, Goldman Sachs, ING, Société Générale, Standard Chartered, and UniCredit—to develop a climate-aligned finance agreement to support decarbonization of the steel sector. The agreement will include a framework for measuring progress against climate targets and act as a platform for proactive engagement with the steel sector. The group aims to finalize the agreement before COP26. (June 2021)
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HYBRIT Initiative — Swedish steel maker SSAB, iron ore producer LKAB, and energy firm Vattenfall, which are working to develop high-quality, fossil fuel-free steel for the automotive industry, produced the world’s first sponge iron reduced at a pilot scale with fossil fuel-free hydrogen gas. Volvo became the first carmaker to partner with the initiative. (June 2021)
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A new “Mission Possible Partnership” was announced to drive decarbonization of seven of the most energy-intensive industries — aluminum, aviation, cement and concrete, chemicals, shipping, steel, and trucking — over the next ten years. The alliance brings together 400 companies and “their customers, suppliers, bankers, shareholders, and regulators.” It is led by the Energy Transitions Commission, Rocky Mountain Institute, the We Mean Business coalition, and the World Economic Forum. (February 2021)
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The Climate Group launched SteelZero, a global initiative aimed at increasing market demand for net-zero steel. A group of eight steel purchasers and specifiers have signed onto the initiative. (December 2020)
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